China's newborn population hit a historic low in 2025, while the aging population continues to rise. According to 2024 demographic statistics, individuals aged 60 and above now account for 22% of the population. This severe aging trend is driving the expansion of the healthcare market. Data from Frost & Sullivan indicates that China's total healthcare expenditure reached RMB 9.76 trillion in 2024, maintaining a stable mid-to-high single-digit growth rate. However, the traditional medical supply chain model in hospitals suffers from severe operational inefficiencies and information silos, making the achievement of the "Healthy China 2030" goal a challenging endeavor. SPD solutions offer an innovative supply chain model that can effectively optimize these issues. As a leader in China's third-party SPD solutions market, Guoyi Technology has submitted a listing application to the Hong Kong Stock Exchange.

The company primarily generates revenue through its SPD solutions and in-hospital IDS solutions businesses. According to Frost & Sullivan, based on 2024 revenue, the company is the largest third-party SPD solutions provider in China, holding a dominant 29.2% market share. Its recent financial performance has been notable. For the periods from 2024 to the first nine months of 2025, revenue was RMB 378 million and RMB 306 million, representing year-on-year growth of 52.4% and 21.9%, respectively. While profit showed some fluctuation, net profit attributable to shareholders was RMB 50 million and RMB 32 million, with year-on-year changes of 994% and -16.7%, respectively. Net profit margins stood at 13.23% and 10.46%. As of November 2025, the company held cash and cash equivalents of RMB 184 million.

Guoyi Technology was established in 2016, initially launching a pilot SPD solution project with The First Affiliated Hospital of USTC (also known as Anhui Provincial Hospital). Its market presence gradually expanded to numerous tertiary hospitals in provinces like Shandong and Zhejiang. Leveraging years of client accumulation, the company commenced its in-hospital IDS solutions business in 2024. Currently, revenue is derived from both SPD solutions and in-hospital IDS solutions. SPD solutions constitute the core revenue source, while the IDS solutions business, launched in 2024, has yet to achieve significant commercial success. In 2024 and the first three quarters of 2025, revenue from the SPD solutions business was RMB 371 million and RMB 301 million, accounting for 98.2% and 98.5% of total revenue, respectively.

Guoyi Technology provides SPD solutions as an integrated service package, encompassing SPD software systems, intelligent hardware, and on-site professional services. Revenue is primarily generated through service fees, calculated as a percentage of the total value of medical supplies transacted via its SPD solutions, with service fee rates ranging from 1% to 3%. In 2024 and the first nine months of 2025, the total transaction value facilitated by the company reached RMB 26.27 billion and RMB 22.455 billion, maintaining a double-digit growth rate. The service fee rates were 1.26% and 1.28%, respectively, remaining relatively stable. Notably, the target clients for SPD solutions are hospitals. In the first three quarters of 2025, the company served 116 hospitals, an increase of 10 from the end of 2024, covering primary, secondary, and tertiary institutions. Among these, 91 were tertiary hospitals, representing a high proportion of 78.4%. The company's customer concentration is not high; in the first nine months of 2025, the top five customers contributed 25% of revenue, with the largest single customer contributing only 5.7%.

Furthermore, Guoyi Technology's in-hospital IDS solutions business began generating revenue in 2024. This segment focuses on designing, developing, and producing Autonomous Mobile Robots (AMRs) and supporting software for automated transport of hospital supplies. The company's AMRs feature automatic charging capabilities, enabling the formation of an intelligent, efficient, round-the-clock hospital-wide logistics network. The monetization of this business still requires time, primarily due to its reliance on an outsourced R&D model. The company appoints third-party R&D partners to develop the AMRs for its IDS solutions, introducing elements of unpredictability. Investment in this area has been low, with only RMB 1.2 million allocated in the first nine months of 2025. Regarding profitability, the gross profit margin has shown some fluctuation but an overall upward trend. From 2023 to the first nine months of 2025, the company's gross profit margin was 37.1%, 41.8%, and 38.8%, respectively. The SPD solutions business essentially contributed 100% of the gross profit, with margins for this segment during the same periods at 37.1%, 41.5%, and 38.7%. In terms of expenses, various expense ratios saw optimization in the first nine months of 2025, with the core administrative expense ratio decreasing by 2.59 percentage points to 10.34%. Driven by the improvement in gross margin and optimization of expense ratios, Guoyi Technology maintained profitability. From 2023 to the first nine months of 2025, its adjusted net profit was RMB 12 million, RMB 58 million, and RMB 43 million, respectively. However, the company's accounts receivable are notably high, reaching RMB 220 million as of September 2025, equivalent to 72% of revenue. Additionally, interest-bearing debt is substantial, with short-term debt of RMB 144 million and long-term debt of RMB 222 million, totaling RMB 366 million. This represents 37.74% of total assets and is 2.8 times the value of cash equivalents, indicating a trend towards tight liquidity.

From an industry perspective, according to Frost & Sullivan, the size of China's SPD solutions market was RMB 181.5 billion in 2024, having grown at a compound annual growth rate (CAGR) of 58.1% over the past five years. The market is projected to reach RMB 10,574 billion by 2029, with a CAGR of 42.3%. However, the third-party SPD solutions market segment is relatively small, valued at RMB 1.1 billion in 2024. It is expected to grow to RMB 9.6 billion by 2029, representing a CAGR of 53.3%, but still accounting for less than 1% of the overall market. China's third-party SPD solutions market is highly concentrated. Based on 2024 revenue, the top five players collectively held approximately 51.7% of the market share. Guoyi Technology ranked first with about 29.2% market share, leading the second-place player by 21.2 percentage points. The company is also recognized as China's first third-party SPD solutions provider. Thanks to years of market accumulation, it holds significant influence within the industry.

On the demand side, SPD solutions primarily aim to optimize hospital supply chain models. Key demand sources include hospitals, medical supply vendors, and patients, with hospitals being the core demand group. Frost & Sullivan data from 2023 shows China had 13,252 primary, 11,946 secondary, and 3,855 tertiary hospitals. The penetration rate of SPD solutions in tertiary hospitals was approximately 36.1% in 2024 and is forecast to reach 90% by 2029. While the penetration rate for third-party SPD solutions is currently low, advancements in AI technology are creating competitive advantages for third-party providers, presenting significant market opportunities. As the industry leader, Guoyi Technology served 1 primary, 24 secondary, and 91 tertiary hospitals as of September 2025, indicating vast potential for market expansion. The company is well-positioned to benefit from the industry's high growth trajectory. Guoyi Technology has also attracted interest from various investors. Between 2018 and 2025, the company progressed from angel rounds to a C2 funding round, attracting diverse capital from entities such as Binhu National University Science Park, Xinli Capital, Qianhai investment entities, and the Anhui Provincial Railway Fund. However, successive funding rounds have continuously pushed the company's valuation higher. The post-money valuation from the latest round (C2) reached RMB 1.914 billion. Early investors have seen substantial paper gains: the valuation increased 33.8 times for angel round investors, 7.7 times for Series A investors, and 2.19 times for Series B investors. However, the valuation increase for investors entering in the C1 round at the end of 2024 was only 2.3%.

Overall, Guoyi Technology's upcoming listing presents certain points of interest. On one hand, revenue continues to grow, its SPD solutions business demonstrates strong industry competitiveness, the customer base is expanding, and the industry outlook is promising with high growth potential due to low penetration rates for third-party solutions that are expected to rise. On the other hand, the company exhibits robust profitability, with a generally rising gross margin trend, suggesting further potential for profit improvement as revenue scales. Nevertheless, Guoyi Technology also faces risks, including the relatively small size of its niche market, high reliance on a single business line, a high proportion of accounts receivable, and a significant level of interest-bearing debt. While the company enters the Hong Kong market with the aura of an industry leader, the substantial paper profits accrued by early investors through multiple funding rounds create potential selling pressure, which the market may not view favorably.